Contemporary Labor Economics 9th Edition by Campbell Mcconnell, Stanley Brue, David Macpherson, Robert Powell, David Colander

تمرين 6

By referring to Figure 5.11(a), explain the impact of the increase of the price of labor on the cost-minimizing quantity of capital. What can you conclude about the relative strengths of the substitution and output effects as they relate to the demand for capital in this specific situation